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Which Combination of Policies Would Entail the Greatest Stimulus to Domestic

Question 170

Multiple Choice

Which combination of policies would entail the greatest stimulus to domestic employment and output in the short run?


A) raising trade barriers on imports and subsidizing exports
B) raising trade barriers on imports and imposing special taxes on exports
C) lowering trade barriers on imports and imposing special taxes on exports
D) lowering trade barriers on imports and subsidizing exports

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